According to AASB 102,one or More of Which Set of Methods

question 45

Multiple Choice

According to AASB 102,one or more of which set of methods should be used to apply the costs of inventories to particular items of inventory?

• A) Specific identification, LIFO or FIFO.
• B) Absorption costing, weighted average costing or LIFO.
• C) FIFO, specific identification or weighted average cost.
• D) Weighted average costing, ABC costing or FIFO.
• E) None of the given answers.

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Definitions:

Activity

Actions taken or work performed, typically aimed at achieving certain goals or objectives.

Profitability

The ability of a business to earn a profit, which is a financial gain that results when the amount of revenue gained from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Asset Management

The practice of strategically managing company or individual assets to increase value and achieve financial objectives.

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets, demonstrating the efficiency of management in using assets to generate profit.